Open Roth IRA Account

Roth IRA provides many
benefits to its users and most financial specialists consider it as one of the
most advantageous investment opportunities ever offered to investors. In order
to qualify for the opening of a Roth IRA account you should meet either of the
following requirements:

if you are single, your annual income should
not be greater than $95,000

if you are married, your annual income should
not exceed $150,000

Roth IRA Contributions

Unfortunately there
are limits up to which you can contribute to your Roth IRA account. They are
annually set by the IRC. Contributions are after-tax dollars. The good news is
that you can retrieve money from your Roth IRA account whenever you feel the
need to without incurring whatsoever penalties, but only paying the regular
income tax. However, you are completely exempt from taxes once you reach the
age of 59 ½. These tax-free withdrawals are subject to the five year rule.

For example, if you
decide to purchase shares valued to $20,000 of Coca Cola by using your Roth IRA
account, after 20 years you will be able to sell these shares at a profit without incurring
any tax burden and enjoy your high profits.

Roth IRA Advantages

Roth IRAs provide to
their investors many advantages, which make them a preferred parking place by
most entrepreneurs. For example, the contributions you make to your Roth IRA
account can be used for the buying of whatever investments you like, be it CDs
(certificates of deposits), bonds, stocks to name a few.

Furthermore, Roth IRA
investors are not tied to any age regarding distribution. Roth IRAs are
extremely beneficial for the unemployed since they can use the money to cover
their medical insurance premiums. This is subject to the limitations that the unemployment
status should be held for at least twelve weeks. Another benefit of Roth IRAs
is again connected with medical expenses. Roth IRAs allow for the coverage of
the excess 7.5% of your gross adjusted income.